Importance of getting your free credit score

Posted on May 21, 2015 in Credit Score

As you may already know, your credit score is one of the most important pieces of information creditors look at when deciding to extend you a line of credit. By making sure that your credit score remains high you will be increasing the chances that you are awarded a line of credit from a bank or credit card company. Various information about your other accounts are included in your credit score such as late payments, delinquent accounts and over the limit accounts. With all of this information potentially affecting your credit score it is important that you closely monitor your rating, so you have a good idea what your credit score is at all times.

By receiving a free credit score check you are able to see exactly what is affecting your credit rating according the three major credit reporting bureaus. It is important that you routinely check your credit score so that you can find any errors and fix them immediately. The FTC recommends some good steps when trying to dispute any errors within your credit report.

Another reason why you would want to routinely check your free credit score is to help prevent identity theft. Identity theft is one of the largest reasons why people encounter a low credit score. Someone has the ability to steal your information and open up various credit card accounts in your name with the intention of harming your credit history. When you receive your free credit score report, you will easily be able to see when a new account has been opened in your name. If you did not open that particular account you will want to contact the appropriate creditor and credit reporting agency immediately to get the problem fixed.

A third reason why it is a good idea to get your free credit score is to see if there are any changes you can make in your monthly spending habits that will help increase your credit rating. If you notice a particular bill consistently gets neglected every few months and shows up on your credit report, you can make any necessary changes to your lifestyle so that does not continue to happen. Perhaps you can get rid of that service or item so that you do not have to keep paying the monthly charges that you are struggling to keep up to date.

With your credit score being so important when it comes to new lines of credit it is a great idea to routinely receive your free credit score so that you can monitor your credit rating. When your credit score starts to lower you will easily be able to see the reason why when looking at your free credit score report. From this report you will be able to take the necessary steps to improve your credit rating, whether that is paying your bills on time, disputing any errors, or fixing any cases of identity theft. With a good credit rating you will have a much easier time making large purchases that require loans or lines of credit.

Back to blog